STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re: Court decision in Case No. 3AN-90- ) Conservation Order No. 277
6998C1, James W. White v Alaska ) Corrected
Oil and Gas Conservation )
Commission requiring amendments to )
Conservation Order No. 254 )
October 10, 1991

Pursuant to the Memorandum Decision issued by Superior Court Judge Donald D. Hopwood on August 6, 1991 the Commission hereby amends Conservation Order No. 254 to correct any reference to Far North Oil and Gas as the Leaseholder or Operator of Record. Underlined language is added, bracketed language is deleted.

NOW, THEREFORE IT IS ORDERED:

A. Finding No. 7 of CO 254 is amended to read:

7. The Mike Pelch #1 well is located on a 120 acre parcel of fee land owned by Pelch and subject to an oil and gas lease to James W. White et al [Far North Oil and Gas Inc.].

B. Finding No. 8 is amended to read:

8. Several persons [other than Far North Oil and Gas Inc. II have the right to drill and produce gas on tracts of land other than the Pelch tract that are within the boundary of the proposed drilling unit.

C. Rule 2 of CO 254 is Amended to read:

With an approved drilling permit, the operator [Far North Oil and Gas, Inc.], is permitted to re-enter the abandoned Cannery Loop Unit No. 2 well to explore for hydrocarbons. If the well proves to be capable of hydrocarbon production, regular production will not be permitted until the Commission has established a drilling unit for the pool and issues an order integrating the interests of owners within the drilling unit, absent voluntary integration by the owners, or until the Commission is furnished by the operator of the Mike Pelch #1 well with a copy of an agreement, certified by the operator to be signed by all persons with a right to drill for and share in the production from the lands within the Mike Pelch #1 well drilling unit, to produce the well for a six month period following the date of initial production.

All other provisions of Conservation Order No. 254 remain in effect.

DONE at Anchorage, Alaska and dated October 10, 1991.

David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission

Lonnie C. Smith, Commissioner
Alaska Oil and Gas Conservation Commission

Russell A. Douglass, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index